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UBS Shares Gain After Soaring Fee Income Drives Surge in Profit

  • Net income of $2 billion above $1.32 billion analyst estimates
  • Swiss bank sees lower client activity levels in third quarter
Bloomberg business news

WATCH: UBS Group AG CEO Ralph Hamers discusses the company's financial results, business outlook and strategy.

(Source: Bloomberg)
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UBS Group AG posted better-than-expected profit in the second quarter after Switzerland’s largest bank benefited from surging new assets and fee income, driving the shares to their biggest gain in more than eight months.

More than a year after the onset of the pandemic, the firm is seeing large increases in both recurring fee income -- which the bank typically receives for helping manage client assets -- and transaction-based earnings as clients boost trading. Those dynamics helped drive net income about 63% higher compared with a year earlier to $2 billion, beating analyst estimates.